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You are here: Home » Resources » Articles » Retail Market Update: Holding Steady Despite Store Closures

May 5, 2025

Retail Market Update: Holding Steady Despite Store Closures

By Partner ESI

Low Vacancy, High Rent Spreads Continue to Support Retail Real Estate Investment

By Joseph Miller, MAI, MRICS, Managing Director for Partner Valuation Advisors,  published on May 05, 2025, on GlobeSt.com

As we continue to move through 2025, which is likely to bring continued economic uncertainty, many investors will be watching to see how retail closure and backfills impact their overall portfolio. While there are retailers in the market looking for space, many are being more cautious than their predecessors when signing large, long-term leases. Many investors also believe that retail in the U.S. is under demolition and as we continue to see mall redevelopments take away and the available retail vacancies should continue to trend downwards, creating opportunities for retail owners.

In this latest GlobeSt article, Joseph Miller discusses how low vacancy will offset store closures, how grocery-anchored stores are still favored, and shares some trends to watch for the rest of 2025.

About the Authors

Partner ESI

Partner ESI

Founded in 2007, Partner Engineering and Science Inc., is the leading provider of engineering, environmental, energy, and construction consulting for the commercial real estate (CRE) industry. Touching 1 in 5 CRE transactions in the U.S., Partner is widely recognized as the largest and best provider of third-party physical due diligence reports, including Phase I Environmental Site Assessments, Property Condition Assessments, Seismic Risk Assessments, Zoning Reports, ALTA Land Title Surveys, and Construction Risk Management. Partner’s connectedness to the CRE market gives it an unparalleled view into CRE trends and risk management insights. Partner also provides a full suite of consulting services to support the entire real estate lifecycle, including: Geotechnical Consulting; Building Systems Consulting; Capital Management and Project Implementation Support; Environmental Health & Safety Consulting; Energy, Sustainability & Resilience Consulting; and Site Civil Engineering. With a responsive approach scaled for speed and agility, Partner helps clients manage risk, make smart investments, optimize asset performance, and win at their real estate investment strategies. Based in Torrance, Calif., Partner has over 1,400 employees in 40 offices around the globe.

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